Making Money in FOREX
Whether you're a stock broker, mortgage broker or loan officer,
FOREX trading is an essential part of one's portfolio. FOREX
trading is an extremely lucrative, yet volatile and risky
market. The facts state that 95% of FOREX traders lose money in
there first year of trading. Why then must FOREX be considered a
part of one's portfolio? Simply because trading FOREX has the
potential to make anyone who is willing to learn the FOREX
market thousands of dollars per month.
It wasn't until recently that average everyday people were able
to trade in the FOREX market. Now it's easy to obtain a mini
account, fund it with $300 and off you go. However, if trading
the FOREX market were this easy, then everybody would become
millionaires and this just isn't the case.
FOREX trading requires consistent analysis of the market. There
are two ways that FOREX traders assess the market. The first is
what is known as fundamentals. Fundamentals rely on news events
such as, CPI, retail sales and home sales. FOREX traders will
make a projection for upcoming data and place their trade based
on their speculations of upcoming news events.
Another type of FOREX trader is what we call a technical trader.
FOREX technical traders rely on chats and mathematical formulas
to place their traders. The idea is that history repeats itself.
Based on historical patterns FOREX traders can use this data to
predict price movement in the future.
There is no proven method to trading. Some people claim to have
found the Holy Grail to FOREX trading. However, through my
experience it's best to develop your own method of trading.
Decide the best time to trade, develop good money management,
and set goals. A lot of experienced FOREX traders trade the
London and New York overlap between the hours of 9:30 am GMT and
2:00pm GMT. The reason for this being is that during this time
the market moves a lot and becomes extremely volatile. Many
FOREX traders are extremely good when it comes to managing their
money.
The key to success in FOREX trading is to block out your
emotions and anxiety. A true FOREX trader will discipline
themselves to stick to their trading style regardless of what
happens in the markets. Many people feel as though just after a
few short months of trading successfully in a demo account they
are ready for the real thing. Take your time and really learn
how the FOREX market works.